6. a. A public college risk management group, or any joint liability fund of the group, shall not begin functioning as a means of providing coverage or protection for or among its members until the group’s bylaws have been filed with and approved by the commissioner. The commissioner may disapprove the bylaws only if the bylaws do not conform with the provisions of P.L.2010, c.99 (C. 18A:64-86 et seq.). The commissioner shall set forth the reasons for disapproval in writing. If the commissioner fails to approve or disapprove the bylaws within 60 days following filing of the bylaws with the commissioner, the bylaws shall be deemed approved. The reasonable costs of the commissioner’s review of the bylaws shall be chargeable to the colleges seeking to establish the group.

b. A public college risk management group shall file an annual report, on a form to be prescribed by the commissioner, and shall include a financial statement of the group’s assets and liabilities, the claims paid during the preceding 12 months, current reserves, incurred losses, and any other information that the commissioner may require.

c. The commissioner shall have authority to examine the books, records and affairs of any public college risk management group or any of its liability funds at a time to be fixed by the commissioner. The reasonable costs of any examination or review shall be chargeable to the public college risk management group.

d. If at any time the commissioner determines that the public college risk management group has experienced a deterioration in its financial condition which adversely affects or will adversely affect its ability to pay expected losses, the commissioner may:

(1) require an increase in the reserves of the group as required by section 4 of P.L.2010, c.99 (C. 18A:64-86 et seq.); or

(2) require the purchase of excess insurance or reinsurance.

L.2010, c.99, s.6; amended 2023, c.65, s.13.